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Assessing officer jurisdiction - query

Others 412 views 2 replies

Abhay

Employee

122 Points Posted on 19 November 2018

As per Section 124 of the Income Tax Act, Where AO has been vested over a jurisdiction over an area, he has jurisdiction on

a) person carrying on Business/Profession in that area

b) Branches of persons who has principal place of business in his area

c) Any person residing in that area.

Now, say if a person named 'X' is residing the area on rent given by the owner of the property 'Y'. Does AO of that area has jurisdiction on 'X' only or 'X' and 'Y'?

Replies (2)

Nivedita

SME - Finance

758 Points Posted on 19 November 2018

Sec 124 nowhere mentions ownership as the criterion.

So, if Mr X carries on any business in the concerned AO's jurisdiction or his principal place of business is in that jurisdiction or he simply resides in that area, Mr X shall fall in the concerned AO's jurisdiction.

As far as the owner is concerned - As per the law's wordings not falling in the first two categories but being a resident can be interpreted broadly. This can include ownership.

Abhay

Employee

122 Points Posted on 19 November 2018

Thanks for the inputs. So, this has no conclusive answer (like case law, clarification, circular etc.) as such but has to be based on interpreation only?? Are we allowed to question the jurisdiction of AO in this case?